Typically, the goal is overall greater energy efficiency (for example, programming home appliances to run at specific times when electrical demand is lowest).
However, this will require modifications to the current electrical system, and advances towards smart grid adoption in the United States have been slow.
Key federal legislation driving the development of smart grid-related technology for the American electrical system includes Title XIII of the Energy Independence and Security Act of 2007 (EISA).
110–140)[12] is the only major piece of federal legislation that addresses the modernization of the United States’ electric utility transmission and distribution system by upgrading to the Smart Grid.
[13] The Department of Energy (DoE) is required by Section 1304 of the act to conduct Smart Grid research, development, and demonstration.
The most comprehensive discussion of Smart Grid technology and its potential implementation in the United States is outlined in Title XIII of the Energy Independence and Security Act of 2007.
[14] This task force can make recommendations for State and Federal policies or actions to ease in the transition to a smart grid.
The computer software that enables devices to engage in Smart Grid functions is also considered qualifying investments, as well as hybrid vehicles.
1307(a)(16)(B)to recover any capital, operating expenditure, or other costs of the electric utility relating to the deployment of the smart grid, from ratepayers.
Studies on both the effect of private wire laws on the development of combined heat and power facilities as well as on security attributes of smart grid systems are also provided for in this piece of the legislation.
A study of the laws and regulations affecting the siting of privately owned electric distribution wires on and across public rights-of-way is to be conducted according to Sec.
This section requires that a report be submitted to Congress that “provides a quantitative assessment and determination of the existing and potential impacts of the deployment of Smart Grid systems on improving the security of the Nation’s electricity infrastructure and operating capability” according to Sec.
Consumer products such as washers, driers, and water heaters need to be designed or retrofitted to handle dynamic communication of market signals from AMI devices.
Finally, the widespread sharing of data and control of personal devices presents large legal, privacy, and security risks that must be addressed.
[16] Since the federal government has stated the goal of promoting smart grid-technology, future legislation and incentives will address technical implementation and budgetary barriers.
In Illinois on the other hand, the Never-Failing Perfect Power Prototype by the Illinois Institute of Technology aims to integrate advanced meters, power controller systems, and demand response controllers to create a more robust distribution grid that reduces peak loads and reduces the risk of blackouts.
[18] In addition to funding research and pilot programs, the DoE is tasked with monitoring the development of smart grids and reporting to Congress every two years.
The report also stated that policy and regulation should be emphasized to enable the development of new smart grid products, services, and markets.
[19] FERC's primary responsibilities and jurisdiction require it to establish rates and terms and conditions for wholesale interstate transmission and sale of electricity.
Their efforts, therefore, have been to collect information and concerns from stakeholders such as the National Association of Regulatory Utility Commissioners and assist the NIST in developing standards relevant to FERC's jurisdiction.
The publication identified 75 standards ranging from telecommunications, internet, and power industry topics that are applicable to smart grids.